Improved Housing Market
The housing market may not be flourishing like it once was, but some indicators suggest the market may be set for a rebound. Many experts are feeling optimistic going into the second half of the year.
During the first half the year home sales lagged expectations, but according to bank and mortgage lenders the housing market is starting to pick back up. Despite a slow start, people are feeling more confident about buying and selling homes. Fannie Mae’s latest Home Purchase Sentiment Index data indicates record-high confidence among American consumers in the state of the housing market. Furthermore, 43 percent of the respondents also thought now was a good time to sell a home. For the first time in a year home prices accelerated, thus, experts believe that the housing market will experience a much-needed increase in inventory. Giving hope to those who are looking to become homeowners.
Interest rates are about one percent lower than were this time last year. These lower rates are also helping the housing market continue to see an increase in activity. Rates have steadily declined with the 30-year fixed rate, reaching 3.82 percent this month. Which represents the lowest level since September 2017. Experts also expect the Federal Reserve to cut the federal funds rate twice this year, which could cause the 30-year fixed rate to decline even further.
Meanwhile, the unemployment rate continues to slightly improve, and we are seeing a modest growth in wages, thus, giving consumers the confidence to reach deeper into their pockets to buy homes. The positive outlook from consumers, combined with the lowering rates, should continue to stimulate growth in the housing market going into the second half of the year.